PAYMENT OF BENEFITS

Memphis Code of Ordinances tit. 4, ch. 4-32, art. 4

in effect

Memphis Code of Ordinances § 4-32-13 General conditions.

Sec. 4-32-13. - General conditions. As a condition precedent to the distribution of any benefit under the plan to a participant or beneficiary, as the case may be, such participant or beneficiary may be required to submit a written application to receive such benefit in such form and manner as shall be prescribed by the board of administration. Any payment of benefits to a participant or beneficiary, or to their legal representative, in accordance with the provisions of the plan, shall, to the extent of the method of computation as well as the amount thereof, constitute full satisfaction of all claims hereunder against the trustee, the board of administration and the employer, who may require such participant or beneficiary or legal representative, as a condition precedent to such payment, to execute a receipt and release therefor. (Code 1985, § 18-52; Ord. No. 4173, § 1, 4-16-1993)

Memphis Code of Ordinances § 4-32-14 Form of benefit payment.

Sec. 4-32-14. - Form of benefit payment. A. Normal form of payment. 1. Except as provided in subsection B of this section with respect to married participants, the normal form of payment of any benefit provided under the plan shall be in the form described as a single life annuity, payable monthly to the participant during his or her lifetime. 2. Any optional forms under section 4-32-15 shall be the actuarial equivalent of such normal form of benefit payment. B. Qualified joint and survivor annuity. 1. Unless a participant is one to whom subsection D of this section applies, benefits payable under the plan to a participant who is married on his or her annuity starting date shall be paid in the form of a qualified joint and survivor annuity. 2. The survivor's benefit payable to a spouse pursuant to this subsection shall be payable until the surviving spouse's death or remarriage. Any spouse who reverts to single status because of death, divorce or annulment may make application to the board that the survivor's benefit be reinstated effective upon approval of the application; provided, however, that the benefit herein shall begin on the first day of the month following approval of the application. 3. In the event the participant is survived by a child or children (but no spouse), or the spouse, if such be the case, is survived by a child or children of such participant, or in the event the spouse remarries, then the same survivor's benefit theretofore paid to the spouse, or the amount to which such spouse would have been entitled, shall be paid to, or divided among, the child or children, or their legal guardian, for so long as such payee(s) remains a child. 4. Notwithstanding the foregoing, the qualified joint and survivor annuity shall not be required with respect to a small benefit as determined under subsection E of this section which is paid in a lump sum. C. Election to receive an optional form of benefit. 1. Each participant shall be given a written notice to the effect that benefits hereafter payable will be in the form specified in this section unless the participant elects to the contrary prior to the commencement of payments. 2. A participant who desires to have his or her retirement benefit paid under one of the optional forms provided in section 4-32-15 shall make an election by written request to the board of administration on forms provided by the board of administration. After retirement benefit payments have commenced, no future elections or revocations of an optional form will be permitted under any circumstances. D. Unmarried participants. If a participant entitled to a benefit under this article is unmarried, the benefit payable to him or her shall be in the form described in subsection A of this section unless an optional form of benefit is elected by the participant under section 4-32-15. E. Small benefit may be paid in lump sum. If an employee terminates service and if the present value of a benefit payable to the participant or his or her beneficiary is equal to or less than $3,500.00, the administrator shall direct that such benefit be paid in a lump sum as soon as is practicable. No lump-sum distribution shall be made after the date be hereunder annuity starting date. (Code 1985, § 18-53; Ord. No. 4173, § 1, 4-16-1993)

Memphis Code of Ordinances § 4-32-15 Optional form of benefit payment.

Sec. 4-32-15. - Optional form of benefit payment. A. Determination of optional benefit. The amount of any benefit payable in accordance with options provided in this article shall be determined as of the date payment thereof is made or commenced as the actuarial equivalent of the normal form of payment. Under any option elected which provides for payments to a beneficiary after the death of a participant, except under option 1 if the participant's spouse is the beneficiary, the actuarial present value of all payments to the participant must be more than 50 percent of the actuarial present value of payments to the participant and his or her beneficiary. B. Description of options. 1. Option 1—Optional joint and survivor annuity. This form of benefit is payable monthly to the participant for life and a percentage (50 percent, 75 percent or 100 percent) of such amount, as elected by the participant, shall continue after his or her death to his or her surviving beneficiary for life. 2. Option 2—Single life annuity. This form of benefit is payable monthly to the participant for life. 3. Option 3—Life annuity with payments guaranteed. This form of benefit is payable monthly to the participant for life with the first 60, 120 or 180 monthly payments guaranteed, as elected by the participant. Any guaranteed payments due after the death of the participant shall be payable to his or her designated beneficiary, if any, who survives the participant, or if there is no surviving designated beneficiary, the commuted value of any remaining guaranteed payments shall be payable in a lump sum to the participant's estate. If the surviving designated beneficiary should die before all guaranteed payments have been paid, the commuted value of any remaining guaranteed payments shall be payable in a lump sum to the estate of the beneficiary. C. Cancellation of election. The election by a participant of any option under this article involving survivor payments shall be null and void if the participant's designated beneficiary shall die before benefit payments commence, and benefits shall be payable pursuant to the normal form of settlement. (Code 1985, § 18-54; Ord. No. 4173, § 1, 4-16-1993)

Memphis Code of Ordinances § 4-32-16 Time of payment.

Sec. 4-32-16. - Time of payment. A. Unless otherwise consented to by the participant, in no event may any benefit pursuant to the plan commence later than the 60th day after the close of the plan year in which occurs the later of: 1. The date on which the participant attains his or her normal retirement age; 2. The tenth anniversary of the date the employee becomes a participant; and 3. The date on which the participant terminates his or her service with the employer. B. Notwithstanding any other provision of this plan, but subject to the joint and survivor annuity provisions of the plan and except as may otherwise be permitted under regulations issued by the Secretary of the Treasury, effective on and after January 1, 1987, benefits pursuant to the plan shall begin to be paid to a participant no later than the later of: (i) April 1 of the calendar year following the calendar year in which he or she attains age 70½, or (ii) April 1 of the calendar year following the calendar year in which the participant retires. Any such participant must be made over the lives of the participant and the participant's designated beneficiary or the life expectancy of the participant (or the life expectancies of the participant and his or her designated beneficiary). All distributions under the plan shall be made in accordance with section 401(a)(9) of the code and regulations issued by the Secretary of the Treasury thereunder including, but not limited to, regulation 1.401(a)(9)-2, taking into account any special rules or options applicable to governmental plans. (Code 1985, § 18-55; Ord. No. 4173, § 1, 4-16-1993)

Memphis Code of Ordinances § 4-32-17 Minimum distributions.

Sec. 4-32-17. - Minimum distributions. If the participant's entire interest is to be distributed in other than a lump sum, then the amount to be distributed each year must be at least an amount equal to the quotient obtained by dividing the participant's entire interest by the life expectancy of the participant or the joint and last survivor expectancy of the participant and his or her designated beneficiary. Life expectancy and joint and last survivor expectant are computed by the use of the return multiples contained in section 1.72-9 of the regulations to the code. For purposes of plus computation, the life expectancy of a participant or his or her spouse may be recalculated no more frequently than annually at the section of the participant, but in the absence of such an express section by a participant an individual's life expectancy shall not be recalculated annually; however, the life expectancy of a nonspouse beneficiary may not be recalculated. (Code 1985, § 18-56; Ord. No. 4173, § 1, 4-16-1993)

Memphis Code of Ordinances § 4-32-18 Direct relievers to other qualified plans.

Sec. 4-32-18. - Direct relievers to other qualified plans. The amount payable to a participant may be paid directly to the trustee or any other qualified retirement plan or arrangement, if and to extent provided by section 401(a)(31) of the code and regulations or other guidance issued by the Secretary thereunder. Any option available to an employer under such code section, regulation or other guidance shall be available hereunder. The plan's administrator shall establish reasonable procedures to accommodate any such direct rollover. (Code 1985, § 18-57; Ord. No. 4173, § 1, 4-16-1993)

Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/code_of_ordinances?nodeId=TIT4PERESY_CH4-32RESYLIEM_ART4PABEFetched: 10/28/2026